Federal Budget 2014

13/05/2014

Budget Handed Down: The Abbott government have revealed its tough budget measures, which are expected to halve Australia’s debt over the next ten years, while also announcing $20-billion will be spent on Medical Research.

Prime Minister Tony Abbott has confirmed there’ll be a deficit levy for high-income earners which will kick in at $180-thousand.

PM Abbott has also confirmed petrol prices will rise, as part of tough but crucial measures to get the nation’s finances back on track.

Winners and Losers in the Federal Budget

THE WINNERS AND LOSERS IN THE FEDERAL BUDGET

Business heads a short list of winners in the 2014 federal budget, while anyone who gets sick is at the top of a long list of losers:

WINNERS

* Business: company tax cut by 1.5 per cent to 28.5 per cent for 800,000 businesses

* Medical research: $20 billion Medical Research Future Fund created

* Universities: can set own tuition fees from 2016

* Private colleges and TAFEs: government to provide grants to students doing diploma and sub-bachelor courses

* Apprentices: Trade Support Loans up to $20,000 over four year apprenticeship (replaces tools allowance)

* Older workers: $10,000 payment for companies employing over-50s who have been on unemployment benefits for six months

* Sick people: new $7 co-payment to see a doctor; Pharmaceutical Benefits Scheme co-payment increased for medicines over $42.70; states and territories authorised to charge fee for GP-type emergency department visits.

* Families: assistance rates frozen for two years; freeze on thresholds for private health insurance rebate; Family Tax Benefit B threshold capped at $100,000 income and limited to families where youngest child under six years of age

* Pensioners: retirement age to increase to 70 by 2035; pension increases slowed by indexing to inflation instead of wages

* High-income earners: people on $180,000 plus paying additional 2 per cent income tax for three years

* Unemployed people: under 25s to get Youth Allowance, not Newstart; under 30s face six month wait for benefits and must work for the dole

* Retirees: Untaxed super income included in test for new recipients of Seniors Health Card. Annual seniors supplement abolished from July 1 2014

* Motorists: increase in petrol excise and indexation reintroduced to raise $2.2 billion over four years

* Public service: 16,500 job cuts in next three years

* Science: Cuts totaling $147 million over four years at CSIRO, Australian Nuclear Science and Technology Organisation and Australian Institute of Marine Science loses

* Poor nations: foreign aid growth cut by $7.9 billion over five years

* Clean energy: Australian Renewable Energy Agency abolished, saving $1.3 billion over five years from 2018; $460 million over three years cut from Carbon Capture and Storage Flagships research program

Joe Hockey – Federal Treasurer

BUDGET REACTION

Over the next six years, the Government will help build new roads, rail, ports and airports. Infrastructure Partnerships Australia’s Brendan Lyon analyses the Growth Package that will take the Government’s total investment to $50 billion by the end of the decade – the largest on record.

AMA Vice President, Professor Geoffrey Dobb discusses with Stuart Bocking Australians being slugged $7 to visit the doctor from July next year.

Only concession card holders and children will escape the payment – but then only after 10 visits, with their annual co-payments capped at $70.

Treasurer Joe Hockey’s first budget last night confirmed the co-payment which is certain to anger health groups who have argued it signals an end to universal health care.

The AMA warns some people will skip treatment, and clog hospital emergency departments.

Michael O’Neill – CEO of National Seniors – says the budget is ‘beyond the pale’ and pensioners are ‘sharpening their pencils’ ahead of the next election.